An actual physical commodity which is delivered at the completion of a contract, as opposed to a futures contract on that commodity. A futures contract will specify the number of units of the cash commodity that must be delivered, and also the specific features of the cash commodity. also called cash commodity.

Definition 3.

1. A term used to describe the underlying in future and forward contracts, dealing with commodities rather than financial instruments.2. A term used to describe a securities historical volatitity.